It’s no secret that things are tough when you’re young and dealing with money is one of the biggest hurdles. When you first start working and you’re not earning that much, it’s difficult to keep on top of your spending and make sure that you’ve got enough to pay all of your bills, especially when the cost of living is going up all of the time. But are those problems really down to circumstance or is it just you?
The truth is, it’s a bit of both. It is hard to manage your money and a lot of people find that their outgoings are a lot higher than their earnings. But at the same time, people make a lot of basic mistakes with their money which makes it harder to afford everything. A lot of it just comes from experience, which is why people in their 20’s get things wrong when it comes to money. When you get a bit older, you should learn how to handle things better but the problem is, that still leaves you in a bad situation right now. If you want to manage your money better, you need to avoid these common money mistakes that people in their 20’s make.
Spending Too Much At University
University isn’t just about getting a degree, it’s about the life experience and for a lot of people, it’s the first time that they have to manage their own money. That inevitably means that you’re going to make a few bad choices but if you spend too much at university, it will come back to bite you. If you can limit your spending and try to save a bit of money, you won’t have to borrow as much and you’ll have some put away when you graduate. You’re not going to automatically get a job right away so having some money set aside will help you to start off on the right foot with your finances.
Bad Car Loans
Most people get a loan to pay for their car, which is fine, but a lot of people don’t spend enough time comparing and they end up with a bad one. If you take the option that the dealership offers you without looking elsewhere, you’ll probably end up paying a high interest rate and wasting money. Instead, you need to speak to the bank and check sites like Looking4CarFinance to see if there are any better deals out there. As long as you take the time to shop around, you can save yourself a lot of money.
Not Planning For The Future
Planning for retirement in your 20’s seems crazy but the earlier you start, the easier it will be later on. If you start putting a small amount of money aside now, you will build compound interest over the years and it will start to grow. But if you wait until you’re in your 40’s before you start thinking about retirement, you’ll struggle to save up the money that you need to live comfortably once you stop working.
If you can avoid these common money mistakes, you’ll find it a lot easier to manage your finances when you’re in your 20’s and you’ll be in a much better position as you get older.